ISLAMABAD: A government committee focused on addressing challenges in the petroleum sector has recommended the introduction of a fuel price adjustment mechanism in gas bills, similar to the existing system in electricity bills.
The proposal emerged during a meeting chaired by Deputy Prime Minister Muhammad Ishaq Dar, where key issues affecting exploration and production (E&P) companies were discussed. The meeting brought together ministers of petroleum, finance, and energy, as well as representatives from both the public and private sectors.
Ishaq Dar underscored the critical role of the energy sector in driving economic growth and stressed the need to support both local and international companies to attract further investment.
Heads of E&P companies raised concerns about the sector’s stability, particularly in light of the growing circular debt. Private sector representatives also emphasized the importance of opening the downstream gas sector to private companies to enhance its stability.
In response, the forum instructed the Petroleum Division to draft amendments to the OGRA Ordinance, paving the way for a mechanism that would allow for monthly or quarterly adjustments to gas rates.
On the issue of security, the committee directed the Interior Division to collaborate closely with E&P companies and other stakeholders to ensure secure operations, especially in high-risk areas. Additionally, the Interior Division was tasked with establishing a one-window facility at both federal and provincial levels to streamline security measures for the sector.
